Islamic finance gaining stronger foothold in #China

As this year’s GDP growth of China is forecast to reach a 44-year low of just 2.5%, there is enough ongoing in the background to prepare for a post-coronavirus rebound. One such sector bustling with activity is Islamic finance which has grown in importance since China embarked on the program of the New Silk Road, officially known as Belt and Road Initiative (BRI). Expanding across Central and Western Asia and eventually the Middle East, the BRI leads through many Islamic economies and jurisdictions, so it is obviously advantageous for Islamic finance and halal trade to join and contribute to the BRI. There is also development of the sector within China itself. Malaysia’s Affin Islamic Bank together with Hong Kong-based Bank of East Asia has been looking into the opportunity of launching Islamic banking services in Urumqi, the capital of Xinjiang. China’s Ningxia and Xinjiang autonomous regions are home to a Muslim population of about 25mn.